How do Closing Costs Work?
"Closing Costs" are the fees which pay for the various services involved when you sell or buy a home. Sellers & buyers usually negotiate to decide how to split these closing costs.
Many of the costs associated with buying a house are associated with getting the mortgage. Since Sky Apply Mortgage, Inc has extensive experience with mortgages & closings, we are closing cost experts.
The Loan Estimate (LE)
Soon after you apply for a loan, we'll provide you with a "Loan Estimate" of your costs. The closing costs specified in the LE are estimated based on Sky Apply Mortgage, Inc's experience with mortgage loans, but costs usually change a little bit between the Loan Estimate (LE) and closing. We go over LEs with buyers every day, so we will be happy to answer any questions you have about closing costs.
Below you'll find a fairly generic list of costs for buying a home. We will always provide you with a specific list of your closing costs when we give you a Loan Estimate.
Standard Closing Costs
Loan-Related Costs
- Interest Payment
- Escrow Account
- Taxes
- Costs associated with "originating" your loan
- Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
- Appraisal Fee
- Pulling YourCredit Report
Property Taxes
- Transfer Taxes and Recording Fees
- Insurance
Homeowners Insurance
- Flood / Earthquake Insurance if applicable
- Private Mortgage Insurance (PMI)
- Title Insurance
Sky Apply Mortgage, Inc can answer questions about these closing costs. Give us a call: 8132007931.